FAQs - AFM Lending, powered by PMR

Question 1

I haven’t filed my taxes. Can I still buy a house?

Accepted Answer

Yes — often. Missing or late returns do not automatically kill a purchase in Phoenix, but they change which program and which documents we use.
FHA / Conventional / VA: underwriters usually want IRS transcripts for the years the program requires. An extension or a recent filing can still work.
Non-QM (bank statement, DSCR, single-page P&L) was built for borrowers whose returns do not tell the full story. See the Non-QM hub and Mi Casa Tax Advisors.
Bring prior-year returns if they exist, 12–24 months of bank statements, and a target close date. Giancarlo Anduray, NMLS 1537433 · 623-552-4191.

Question 2

What is an FHA loan?

Accepted Answer

An FHA loan is a government-insured mortgage backed by the Federal Housing Administration. It’s designed to help buyers with lower down payments, more flexible credit guidelines, and higher debt ratios compared to some other loan programs.

Question 3

How much is the minimum down payment for an FHA loan?

Accepted Answer

The minimum down payment is typically 3.5 percent if the borrower meets FHA credit requirements. This is a general guideline and depends on the overall loan profile.

Question 4

What credit score is required for an FHA loan?

Accepted Answer

FHA allows lower credit scores than many other loan types. Lenders review the full credit profile, not just the score, including payment history and recent activity.

Question 5

Can I get an FHA loan with collections or charge-offs?

Accepted Answer

Yes, in many cases. FHA does not require all collections to be paid off, but the type, balance, and history of the accounts matter.

Question 6

Does FHA allow higher debt-to-income ratios?

Accepted Answer

Yes. FHA generally allows higher debt-to-income ratios than conventional loans, especially when there are compensating factors like stable income or cash reserves.

Question 7

What types of income are acceptable for FHA loans?

Accepted Answer

FHA allows many income types including salaried, hourly, overtime, bonus, commission, self-employed, retirement, Social Security, disability, and VA benefits, as long as they are properly documented.

Question 8

How long do I need to be on my job to qualify for FHA?

Accepted Answer

FHA typically looks for a two-year employment history, but it does not have to be with the same employer. Gaps can be acceptable depending on the reason.

Question 9

Can I use gift funds for my FHA down payment?

Accepted Answer

Yes. FHA allows 100 percent of the down payment and closing costs to come from approved gift sources such as family members.

Question 10

Who can give gift funds on an FHA loan?

Accepted Answer

Acceptable gift sources include family members, close friends with a documented relationship, employers, labor unions, charitable organizations, and certain government assistance programs.

Question 11

Does FHA require mortgage insurance?

Accepted Answer

Yes. FHA loans require both an upfront mortgage insurance premium and a monthly mortgage insurance payment.

News & Article